AMP Capital Core Infrastructure Fund

Core infrastructure assets are the backbone of developed economies and can provide defensive, regular income streams as well as capital growth.

The AMP Capital Core Infrastructure Fund offers individual investors the opportunity to invest in high-quality unlisted infrastructure assets that are usually only available to large institutional investors.

To control risk and provide investors with diversification and liquidity, the Fund takes an integrated approach to building a strategically blended portfolio of unlisted infrastructure assets and listed infrastructure securities in Australia and around the globe. The target asset allocation is a 50:50 blend of unlisted infrastructure assets and listed infrastructure securities plus cash.

The Fund offers strong total return (income and capital growth) potential. It has been built to have a low correlation with most other mainstream asset classes, such as equities and bonds. This means investors may benefit from diversification through access to investments with a return profile that differs from others asset classes.

“We look for companies that can deliver predictable cash-flows through any economic cycle.”John Julian, Portfolio Manager

A fund built with these goals in mind

Invest in significant infrastructure assets sourced by AMP Capital

Assets such as Melbourne Airport (Aust), Angel Trains (UK) and Powerco (NZ) are among the largest and most significant infrastructure assets in their sectors in their respective countries. Ownership is largely restricted to large institutional investors.

Access the steady, predictable cash flows of infrastructure

The essential services nature of infrastructure assets means earnings are generally less volatile than equities.

Smoother return pathway when used as part of a diversified portfolio

Investment returns from infrastructure generally have a low correlation to other mainstream assets such as equities and bonds, delivering a smoother, less volatile return profile for investors seeking greater predictability.

How does this fund fit into your portfolio?

The Fund is designed for investors seeking an investment which provides the potential for sustainable income and capital growth over the long term. It can be used to complement existing solutions in a blended portfolio or it can be used individually.

What are the risks?

All investments involve risk and you should consider investment risks before making an investment decision. The key risks of investing in the Fund include or are associated with:

liquidity – potential significant delays in pricing and processing withdrawals, and the possible suspension of withdrawals if the Fund ceases to be liquid

share market investments – the value of the Fund’s listed securities may decrease as a result of adverse share market movements

international investments – risks include exchange rate loss and the risk that political or economic climates may change without notice, and

gearing – losses as well as returns may be magnified through the use of gearing.

Risks of investing specific to the Fund may also include or be associated with currency exchange rates, deal flow, infrastructure investments, infrastructure and utility market regulation, co-ownership, and derivatives.

The ‘Risks of investing’ section of the Product Disclosure Statement for this Fund provides further information about the risks noted above, as well as information about other investment risks of which you should be aware.

Australia Pacific Airports Corporation

SA Schools Public Private Partnership

Location: South Australia
Sector: Social
Acquisition date: February 2012
Business: Design and construction, operation and maintenance of six primary and secondary schools in South Australia until 2039

Fund facts

APIR code

AMP1180AU

Investment objective

To provide total returns (income and capital growth) after costs and before tax, above the Fund's performance benchmark.

Minimum suggested timeframe

5 years

Distribution frequency

Quarterly

Inception date

30 October 2007

Minimum investment

A$ 10,000 - Personal Investor/Off-platform Class H

Risk level (1 - 7)

6. High

Benchmark

10 year Australian Government Bond Yield plus 3.25% pa

Status

Open

The Fund's risk level is based on the estimated number of negative annual returns for the Fund over any 20 year period and is not a complete assessment of the risks of investing in the Fund. For instance it does not detail what the size of a negative return could be or the potential for a positive return to be less than an investor may require to meet their objectives. Consequently, before choosing to invest or reinvest in the Fund, you should read the Fund's PDS and incorporated information and consider factors such as the likely investment return, the risks of investing and your investment time frame. Information about the methodology used for calculating the risk level is available here.

The Lonsec Rating (assigned June 2016) presented in this document is published by Lonsec Research Pty Ltd ABN 11 151 658 561 AFSL 421445. The Rating is a “class service” (as defined in the Financial Advisers Act 2008 (NZ)) or is limited to “General Advice” (as defined in the Corporations Act 2001 (Cth)) and based solely on consideration of the investment merits of the financial product(s). In New Zealand it must only be provided to “wholesale clients” (as defined in the Financial Advisers Act 2008 (NZ)). Past performance information is for illustrative purposes only and is not indicative of future performance. It is not a recommendation to purchase, sell or hold AMP Capital product(s), and you should seek independent financial advice before investing in this product(s). The Rating is subject to change without notice and Lonsec assumes no obligation to update the relevant document(s) following publication. Lonsec receives a fee from the Fund Manager for researching the product(s) using comprehensive and objective criteria. For further information regarding Lonsec’s Ratings methodology, please refer to Lonsec website at: www.lonsecresearch.com.au/research-solutions/our-ratings

The Zenith Investment Partners (“Zenith”) Australian Financial Services License No. 226872 rating (assigned July 2017) referred to in this document is limited to “General Advice” (as defined by the Corporations Act 2001) for Wholesale clients only. This advice has been prepared without taking into account the objectives, financial situation or needs of any individual. It is not a specific recommendation to purchase, sell or hold the relevant product(s). Investors should seek independent financial advice before making an investment decision and should consider the appropriateness of this advice in light of their own objectives, financial situation and needs. Investors should obtain a copy of, and consider the PDS or offer document before making any decision and refer to the full Zenith Product Assessment available on the Zenith website. Zenith usually charges the product issuer, fund manager or a related party to conduct Product Assessments. Full details regarding Zenith’s methodology, ratings definitions and regulatory compliance are available on our Product Assessment’s and at http://www.zenithpartners.com.au/RegulatoryGuidelines

AMP Capital Funds Management Limited (ABN 15 159 557 721, AFSL 426455) (AMPCFM) is the responsible entity of the AMP Capital Core Infrastructure Fund and the issuer of the units in the Fund. To invest in the Fund, investors will need to obtain the current Product Disclosure Statement (PDS) from AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232 497) (AMP Capital). The PDS contains important information about investing in the Fund and it is important that investors read the PDS before making a decision about whether to acquire, or continue to hold or dispose of units in the Fund. Neither AMP Capital, AMPCFM nor any other company in the AMP Group guarantees the repayment of capital or the performance of any product or any particular rate of return referred to in this information. Past performance is not a reliable indicator of future performance. While every care has been taken in the preparation of this information, AMP Capital makes no representation or warranty as to the accuracy or completeness of any statement in it including without limitation, any forecasts. This content has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. Investors should, before making any investment decisions, consider the appropriateness of this information, and seek professional advice, having regard to their objectives, financial situation and needs.

Important: The unit prices displayed in this section are indicative only.

If unit prices are not available for today then the latest available prices will be displayed. Unit prices are not calculated on weekends or public holidays.

Our unit price discretion policy states where we may exercise certain discretions in determining the unit price of units on application or withdrawal in each investment option. View and download our Unit Pricing Discretions Policy for the types of discretions that we may exercise, in what circumstances, our policies on how we exercise the discretions and the reasons why we consider our policies are reasonable.

Unit prices are provided for your information only and are not guaranteed. They are based on historical data and you should not rely on the above information as the basis for making any investment, financial or other decision as past unit prices are not a reliable indicator of future unit prices.

During the time it takes to process an application or redemption application, the unit price may vary and the actual unit prices applying to applications and redemptions may differ from those displayed in this section. Actual unit prices can be confirmed on receipt of a completed application or redemption form.

None of AMP Capital Funds Management Limited (ABN 15 159 557 72, AFSL 426455), AMP Capital Investors Limited (ABN 59 001 777 591, AFSL 232497), National Mutual Funds Management Limited (ABN 32 006 787 720, AFSL 234652), or any company within the AMP Group makes any representation or warranty as to the reliability, completeness or accuracy of the unit price information or accepts any responsibility arising in any way (including by reason of negligence) for errors in or omissions from the unit price information.

The information in this section is not an offer or recommendation of securities or other financial products offered by the AMP Group and is not an invitation to take up securities or other financial products. Investors should consider the relevant PDS available from us for the relevant fund before making any decision regarding the product.